President Muhammadu Buhari on Tuesday presented the budget for the 2020 fiscal year to the joint session of the National Assembly, informing the lawmakers that the Federal Government expected a revenue of N8.155tn for the year.
The president while presenting the Budget described it as a budget of Fiscal Consolidation to strengthen Nigeria’s macroeconomic environment; investing in critical infrastructure, human capital development and enabling institutions, especially in key job-creating sectors.
“The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.”
President Buhari said the 2020 budget is based on the new VAT rate. The increased revenues will be used to fund education, health, and infrastructure.
The increase in the budget also reflects the new national minimum wage.
The budget proposal was prepared based on the following assumptions: Benchmark of $57 per barrel, daily oil 1.86million barrel per day.
Allocations for some MDAs announced by President Buhari:
Works and Housing – N262billion
Transportation – N123billion
UBEC – N112billion
Defence – N100billion
Agriculture – N83billion
Water – N82billion
Niger Delta – N81billion
Education – N48billion
Health – N46billion
NEDC – N38billion
SIP – N30billion
FCT – N28billion
Unlike the previous year where the president was interrupted intermittently by lawmakers with jeers and cheers, he was given a warm reception by the lawmakers with rousing applause at the end of his presentation.